Cost Allocation

Zenon Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:

Product
Units Produced
Sales Value at Splitoff Point

Turpentine
6,000 liters
$60,000

Paint thinner
6,000 liters
50,000

Spot remover
3,000 liters
25,000

Question: Determine the amount of joint cost allocated to each product if the physical-measure method is used.

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